New Delhi: Ailing national carrier, Air India, has decided to go for the direct import of Aviation Turbine Fuel (ATF) in a bid to curtail the escalating cost of aviation fuel.
The board of Air India which approved the direct import of aviation jet fuel on Tuesday also gave a go ahead to the State-owned carrier to soon appoint a service provider who would source the supply as well as provide the necessary infrastructure for storage and distribution of the same for in-plane fuelling. The government had recently approved direct import of ATF.
Air India expects to end the year with higher than budgeted performance in the revenues. However, the escalating cost in fuel is likely to impact an additional Rs.2,200 crores and its fuel bill is estimated to be around Rs. 8,000 crores for 2011-12. Added to this, the additional interest cost of Rs.1,500 crores, eroded the profitability of the airline.
The board also took on record the progress on the restructuring of the working capital into long term loans whereby Rs.11,000 crores worth of working capital are proposed to be converted into long term loans and Rs.3,400 crores into cash credit facilities.
27/03/12 Vinay Kumar/The Hindu
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment